7 Crucial Things To Do Before Purchasing a Property

7 Crucial Things To Do Before Purchasing a Property

You’re all set to make the greatest investment of your lifetime – property purchasing –whether as a real estate investment or to live with your family.

Statistics show that in 2019-2020, one out of five, or 2.02 million Australian households, own property besides residing purposes.

However, buying a property, even if you have already bought one, can be complicated. You must follow this guide strategically to avoid unnecessary delays and ensure a smooth journey.

1. Fix a budget

Before you invest in a new property, you need to plan. List all possible expenses required to acquire the property, as well as your income sources, savings, and any other finance options.

Next, understand how much you can offer as a down payment and how much will be left every month after paying for all lifestyle expenses.

2. Arrange funds

If you especially want a plot or independent house, the down payment will be much larger. In that case, you’ll have to invest more. Just to be prepared, you must gather your funds ahead of time to avoid losing the property of your dream.

You can easily get home loans if you want an apartment. However, if you plan to get your own house, you need lots of documentation to get your loan sanctioned.

In this case, it’s best to seek a loan officer to know your eligibility, interest rates, and required documents. It’ll also help you understand whether you can afford monthly installments.

3. Select the location

Properties in specific locations have a higher chance of increasing market value. On the other hand, property value remains the same in slow-developing localities.

The rent varies based on these markers. The former will be quite heavy on your pocket compared to the latter. However, the latter is a better option if you plan to resell.

4. Do background checks

You need to look out for some issues while purchasing property, like:

  1. Nowadays, property frauds are on the rise. So, you must also conduct a property title search from a reputable registry office with access to all properties. This will offer you verification of current ownership, any unregistered dealings, caveats against the title, mortgages registered on the title, and all other research opportunities for homebuyers. 
  2. Often, builders construct properties that look striking only from the outside. However, the materials used are low quality. Assess the construction for cracks and check whether the materials are sourced from reliable suppliers. Review all records of compliance as well.
  3.  Lastly, builders also fail to deliver property according to the promised time. They might also not cooperate in document completion. Research a builder’s background properly and connect with their other clients. Ensure they have a good reputation before sealing deals.

5. Check for necessary facilities

Ask around in the neighborhood and find out whether the power and water supply are smooth. If either is an issue, steer clear of such properties.

If you have a car, check the locality or property for parking spaces. Check whether you will have to invest separately in parking and whether you have the budget. Ensure other facilities like schools, hospitals, shopping zones, banks, parks, and gyms are closed.

Next, explore the locality during peak hours to understand the worst traffic scenarios. Whether you want to resell the property or move in with your family, this is an important factor.

6. Observe if renovation is required

Some properties are semi- or fully furnished, while others are completely barren. The prices vary depending on the furnishing.

If you don’t have furniture and other necessities already and don’t have time to furnish your place, it’s better to get a furnished property. If your budget is low or you already have a chunk of furniture, go for the raw ones.

7. Check in with a lawyer and insurance provider

Property buying is risky, so speak with a lawyer for guidance. Learn the relevant laws and what documents need to be filed ahead of time. This way, you won’t leave any room for getting penalized later on.

Speak to insurance providers from banks or financing companies. Discuss the best home insurance policies for your property according to your budget. This is a huge savior in case of unexpected damage.

Consider whether you can manage the insurance expenses before investing in the property.

Conclusion

Property acquisition is complicated and full of pitfalls. However, you can enjoy a smoother experience in your next property acquisition with these steps. So, follow them diligently and make the most out of your investment!

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